The shifts and the shocks : what we've learned -- and have still to learn -- from the financial crisis

"The book identifies the origin of the crisis in the complex interaction between globalization, hugely destabilizing global imbalances and our dangerously fragile financial system. In the eurozone, these sources of instability were multiplied by the tragically defective architecture of the monetary union. It also shows how much of the orthodoxy that shaped monetary and financial policy before the crisis occurred was complacent and wrong. In doing so, it mercilessly reveals the failures of the financial, political and intellectual elites who ran the system. The book also examines what has been done to reform the financial and monetary systems since the worst of the crisis passed. "Are we now on a sustainable course?" Wolf asks. "The answer is no." He explains with great clarity why "further crises seem certain" and why the management of the eurozone in particular "guarantees a huge political crisis at some point in the future." Wolf provides far more ambitious and comprehensive plans for reform than any currently being implemented"--;Preface: Why I wrote this book -- Introduction: 'We're not in Kansas any more' -- Part 1. The shocks : From crisis to austerity -- The crisis in the Eurozone -- Brave new world -- Part 2. The shifts : How finance became fragile -- How the world economy shifted -- Part 3. The solutions : Orthodoxy overthrown -- Fixing finance -- Long journey ahead -- Mending a bad marriage -- Conclusion: Fire next time.;"From the chief economic commentator for the Financial Times, a brilliant tour d'horizon of the new global economy and its trajectory There have been many books that have sought to explain the causes and courses of the financial and economic crisis which began in 2007-8. The Shifts and the Shocks is not another detailed history of the crisis, but the most persuasive and complete account yet published of what the crisis should teach us about modern economies and economics. The book identifies the origin of the crisis in the complex interaction between globalization, hugely destabilizing global imbalances and our dangerously fragile financial system. In the eurozone, these sources of instability were multiplied by the tragically defective architecture of the monetary union. It also shows how much of the orthodoxy that shaped monetary and financial policy before the crisis occurred was complacent and wrong. In doing so, it mercilessly reveals the failures of the financial, political and intellectual elites who ran the system. The book also examines what has been done to reform the financial and monetary systems since the worst of the crisis passed. "Are we now on a sustainable course?" Wolf asks. "The answer is no." He explains with great clarity why "further crises seem certain" and why the management of the eurozone in particular "guarantees a huge political crisis at some point in the future." Wolf provides far more ambitious and comprehensive plans for reform than any currently being implemented. Written with all the intellectual command and trenchant judgment that have made Martin Wolf one of the world's most influential economic commentators, The Shifts and the Shocks matches impressive analysis with no-holds-barred criticism and persuasive prescription for a more stable future. It is a book no one with an interest in global affairs will want to neglect."-- "From the chief economic commentator for the Financial Times, a brilliant tour d'horizon of the new global economy and its trajectory There have been many books that have sought to explain the causes and courses of the financial and economic crisis which began in 2007-8. The Shifts and the Shocks is not another detailed history of the crisis, but the most persuasive and complete account yet published of what the crisis should teach us about modern economies and economics. The book identifies the origin of the crisis in the complex interaction between globalization, hugely destabilizing global imbalances and our dangerously fragile financial system. In the eurozone, these sources of instability were multiplied by the tragically defective architecture of the monetary union. It also shows how much of the orthodoxy that shaped monetary and financial policy before the crisis occurred was complacent and wrong. In doing so, it mercilessly reveals the failures of the financial, political and intellectual elites who ran the system. The book also examines what has been done to reform the financial and monetary systems since the worst of the crisis passed. "Are we now on a sustainable course?" Wolf asks. "The answer is no." He explains with great clarity why "further crises seem certain" and why the management of the eurozone in particular "guarantees a huge political crisis at some point in the future." Wolf provides far more ambitious and comprehensive plans for reform than any currently being implemented. Written with all the intellectual command and trenchant judgment that have made Martin Wolf one of the world's most influential economic commentators, The Shifts and the Shocks matches impressive analysis with no-holds-barred criticism and persuasive prescription for a more stable future. It is a book no one with an interest in global affairs will want to neglect."-- "The book identifies the origin of the crisis in the complex interaction between globalization, hugely destabilizing global imbalances and our dangerously fragile financial system. In the eurozone, these sources of instability were multiplied by the tragically defective architecture of the monetary union. It also shows how much of the orthodoxy that shaped monetary and financial policy before the crisis occurred was complacent and wrong. In doing so, it mercilessly reveals the failures of the financial, political and intellectual elites who ran the system. The book also examines what has been done to reform the financial and monetary systems since the worst of the crisis passed. "Are we now on a sustainable course?" Wolf asks. "The answer is no." He explains with great clarity why "further crises seem certain" and why the management of the eurozone in particular "guarantees a huge political crisis at some point in the future." Wolf provides far more ambitious and comprehensive plans for reform than any currently being implemented"-- From the chief economic commentator for the Financial Times, a brilliant tour d'horizon of the new global economy and its trajectory We have been inundated with books about the 'financial crisis.' Surely, there is little more to be said. Martin Wolf agrees. In fact, he argues, too much has been said about the purely financial aspects of the crisis, important though they are. The underlying problem is that the world economy is unable to cope with the major shifts it is undergoing: rapid economic integration, competition from billions of new workers, technological revolutions, and the floods of capital across the world. These shifts have transformed relationships among economies and within them, creating new competitors, huge imbalances, and huge increases in inequality. With those shifts have come vast and largely unforeseen financial shocks. The breakdown of the financial system in the high-income countries of the West was a symptom of unsuccessful, incomplete, and misguided adjustments to the imbalances created by this new world. The shocks are partly the result of the financial system's frailties, which must be remedied durably and radically. But they are also the consequence of deeper economic forces. To focus only on the financial breakdown is to mistake symptoms with causes. As important as improving the financial system is making the global economic system more stable. The Shifts and the Shocks is the tour d'horizon of the new world economy that only Martin Wolf could write. It cements his status as among our most farseeing and imaginative economic commentators. Wolf makes us see how partial and confused our view of the economic events of the last five years has been. No other book offers such a thoroughly global perspective, nor one that understands the connection between the macroeconomics and the financial system with Wolf's level of sophistication and insight. It is not a book for those looking for a cheerful prognosis on the future of the European Union, or any number of other vital issues hanging fire, and it offers solutions that will seem extremely radical to some, but neither is it without hope. The new global economic order is lifting tens of millions of people out of poverty and creating new winners and losers at an unimagined scale and pace. It's simply high time, indeed past time, for our economics to keep pace with our economy. Now, with The Shifts and the Shocks, it has From The Chief Economic Commentator For The Financial Times, A Brilliant Tour D'horizon Of The New Global Economy And Its Trajectory There Have Been Many Books That Have Sought To Explain The Causes And Courses Of The Financial And Economic Crisis Which Began In 2007-8. The Shifts And The Shocks Is Not Another Detailed History Of The Crisis, But The Most Persuasive And Complete Account Yet Published Of What The Crisis Should Teach Us About Modern Economies And Economics. The Book Identifies The Origin Of The Crisis In The Complex Interaction Between Globalization, Hugely Destabilizing Global Imbalances And Our Dangerously Fragile Financial System. In The Eurozone, These Sources Of Instability Were Multiplied By The Tragically Defective Architecture Of The Monetary Union. It Also Shows How Much Of The Orthodoxy That Shaped Monetary And Financial Policy Before The Crisis Occurred Was Complacent And Wrong. In Doing So, It Mercilessly Reveals The Failures Of The Financial, Political And Intellectual Elites Who Ran The System. The Book Also Examines What Has Been Done To Reform The Financial And Monetary Systems Since The Worst Of The Crisis Passed. Are We Now On A Sustainable Course? Wolf Asks. The Answer Is No. He Explains With Great Clarity Why Further Crises Seem Certain And Why The Management Of The Eurozone In Particular Guarantees A Huge Political Crisis At Some Point In The Future. Wolf Provides Far More Ambitious And Comprehensive Plans For Reform Than Any Currently Being Implemented. Written With All The Intellectual Command And Trenchant Judgment That Have Made Martin Wolf One Of The World's Most Influential Economic Commentators, The Shifts And The Shocks Matches Impressive Analysis With No-holds-barred Criticism And Persuasive Prescription For A More Stable Future. It Is A Book No One With An Interest In Global Affairs Will Want To Neglect. -- 'we're Not In Kansas Any More' -- The Shocks. From Crisis To Austerity ; The Crisis In The Eurozone ; Brave New World -- The Shifts. How Finance Became Fragile ; How The World Economy Shifted -- The Solutions. Orthodoxy Overthrown ; Fixing Finance ; Long Journey Ahead ; Mending A Bad Marriage -- Fire Next Time. Martin Wolf. Includes Bibliographical References (pages 401-425) And Index. From the chief economic commentator for the Financial Times —a brilliant tour d’horizon of the new global economy There have been many books that have sought to explain the causes and courses of the financial and economic crisis that began in 2007. The Shifts and the Shocks is not another detailed history of the crisis but is the most persuasive and complete account yet published of what the crisis should teach us about modern economies and econom­ics. Written with all the intellectual command and trenchant judgment that have made Martin Wolf one of the world’s most influential economic com­mentators, The Shifts and the Shocks matches impressive analysis with no-holds-barred criti­cism and persuasive prescription for a more stable future. It is a book no one with an interest in global affairs will want to neglect.